Corporate Communication: Meaning, Importance and Guidelines

Read this article to learn about Corporate Communication. After reading this article you will learn about:- 1. Meaning of Corporate Communication 2. Characteristics of Corporate Communication 3. Importance 4. Guidelines.

Meaning of Corporate Communication:

‘Corporate Organisation’ means an organisation formed by some people, having a separate entity and perpetual succession.

A company, statutory corporation, co-operative ventures, etc. are considered to be corporate organisations because these are registered and have separate legal entity and perpetual existence.

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Generally such organisations are not small they are medium or large in size. Therefore, exchange of information and news with a large number of people within and outside the organisation is required to be made.

Various departments and employees of the organisations are connected through communication network by phones, face-to-face discussion, e-mail, fax, memos, etc. to convey orders, instructions and information, to supervise and evaluate performance, to understand and perform individual job, to identify and solve a problem and, ultimately, to fulfill the objectives of the organisation.

Therefore, corporate communication refers to a process of communication through which the managers, supervisors and executives exchange their views, opinions, feelings, etc. with the subordinates and employees in any corporate organisation and negotiate with the outside world with a view to fulfilling the objectives of the organisation.

Characteristics of Corporate Communication:

The various characteristics of corporate communication are mentioned below:

1. Formal Communication:

Most of the corporate communications are formal in nature. Orders, instructions, information, suggestions, etc. are sent, maintaining formal procedure in a systematic way. If has to pass through several organisational stages.

2. Informal Communication:

The size and structure of a corporate organisation being large and complex, informal communication or grapevine communication among different groups of employees takes place side by side with formal communication.

3. Internal and External Communication:

Exchange of information with a large number of people within and outside the business is required in corporate communication. Internal communication with the managers and employees, and external communication with the customers, vendors, distributors, competitors, investors, government offices, etc. are made.

4. Oral and Written Communication:

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While oral communication is used for closer and internal communication with the employees, written communication is made with the outsiders and distant people.

5. Wide Coverage:

Corporate organisations are large and a wide range of people are required to be covered in communication. People within the organisation at different levels in different departments and a large number of people outside the organisation are required to be communicated within the course of running the activities of the organisation.

6. Means of Communication:

7. Feedback:

As in the case of other communication, feedback is an essential element of successful corporate communication. It is a two-way process of sending information and receiving response. Through feedback the sender can know the reaction’ of the recipient and take necessary action.

8. Long-term System:

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Corporate organisation has a perpetual existence. So, corporate communication is not a temporary arrangement. It is a long-term system or process. Communication is carried out continuously through a stable process.

9. Continuous Flow of Communication:

In a corporate organisation, flow of communication is continuous and uninterrupted; continuous due to the organisation’s perpetual existence, and uninterrupted owing to following the formal or official channel.

10. Reliable Information:

In a corporate organisation, information is collected through various sources and decisions are taken after necessary scanning, scrutinizing, etc. to make the information dependable and correct.

Importance of Corporate Communication:

Communication has an important role to play in the corporate world. With the increase in the complexities of activities in modern business, its importance is growing day-by-day. To achieve the objectives of the organisation, co-ordination among the persons and departments within the organisation and establishment of connecting link with the outside world are very much necessary.

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Motivating the employees for better and greater performance, facilitating group performance, controlling their activities, taking corrective measures, wiping out misunderstanding, maintaining peace, establishing discipline, and, above all, ensuring the quality of work within the organisation is possible through effective communication.

Establishing link with the outside world—with the customers, vendors, investors, bankers, similar business organisations within and outside the country, various departments of the government, etc. also depends on communication. Corporate business houses are, in most cases, engaged in international business. Excellence in communication in such cases is a basic need.

They are required to make corporate presentation of their goods and services, inform and report, explain change, interact with the colleagues, motivate and support the staff, supervise, organise and co-ordinate a course of action, build and maintain relationship with overseas clients, participate in meeting, introduce themselves as business houses, promote a sales drive, make market research, cope with mixed language problem interacting with the foreign colleagues and so on. All these activities require communication skill.

Modern technologies in communication have made the communication process speedy. It is a boon to corporate communication because a slightest delay in making decision may place one in a difficult position—behind one’s competitors.

The importance of corporate communication may be described as follows:

1. Internal Co-ordination:

To fulfill the objectives of the organisation, co-ordination among the employees is necessary and to co-ordinate various activities communication is essential. Corporate organisation being large in size, division of work and specialisation in activities are the characteristics of such organisation. Communication helps to co-ordinate such activities and to develop co-operation.

2. Connecting Link with the Outside World:

In a corporate organisation, communi­cation with the external people, such as customers, vendors, investors, competitors, government departments, etc. are essential. Even connecting links with the foreign counterparts and centres are necessary for proper functioning of the organisation.

3. Motivation:

Communication helps to motivate the employees to obey the orders and directives of the management authority. The feedback of the employees also enlightens the managers. The interaction between the managers and the employees improves the relation between them and encourages all to devote themselves fully to achieve the objectives of the organisation.

4. Efficient Management:

George Terry’s remark that communication works as a lubricant to increase the efficiency of management is applicable to corporate organisations more appropriately. Communication supplies the managers and employees with the information, co-ordinates and motivates the employees.

This results in co-operation and better performance, resolves conflicts, builds confidence and ultimately develops efficient management. The managers, supervisors and executives get instructions, orders, messages, etc. from their superiors through communication, become aware of their duties and responsibilities and exact performance from their subordinates. Thus, communication stimulates efficient management.

5. Decision-making and Implementation:

The success of any corporate organisation depends largely upon decision-making. Right decision-making, again, depends upon correct and timely information which is obtained through communication. Again, implementation of the decision requires proper communication.

The managers convey the procedure of implementing the decision through communication channels and evaluate the work of the employees. Thus, corporate communication has a meaningful role in decision-making and its implementation.

6. Leadership:

The manager communicates orders and instructions to the subordinates, who, in turn, carry out the instructions and sometimes send feedback in the form of suggestions, grievances and complaints. The manager tries to remove the inconvenience as far as possible. The entire process establishes the basis of leadership.

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Lack of communication creates distrust, doubts and misunderstanding among the subordinates. Proper communication helps to remove them and create an environment of mutual co-operation, trust and dependence and, ultimately, achieve acceptance of the leadership of the official head.

7. Corrective Measures:

In a corporate organisation the number of employees is large. Everybody’s performance may not achieve required standard and some corrective measures may become necessary. Such measures against the employees not performing their duties properly can also be taken through communication. Communication thus protects the interest of the organisation.

8. Speed:

Speed is the key word of today’s corporate world. Modern technologies have made communication faster. Now, no one has to wait for weeks or months for a reply letter. E-mail, fax, internet, etc. have made communication almost instant. Immediate flow of information helps in taking correct decision in time and anticipates solution to a probable problem.

9. Discipline and Peace:

Maintenance of discipline in large corporate sector is difficult. Control over a large number of managers and employees is not an easy task. But regular communication (Two-way) between the management authority and the workers creates a healthy human relation and sense of co-operation, assistance and unity. Thus, peace is established and discipline is maintained within the organisation.

10. Training:

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Communication is necessary in imparting training to the managers, supervisors, executives and general employees to upgrade their knowledge and skill of performance in order to meet the needs of the changing corporate world.

This may include training in the field of science and technology, up-gradation of technical know-how, development of management skill, and even a training in learning a language for communication.

Guidelines for Effective Corporate Communication

Corporate communication to be effective should follow some guidelines stated below:

1. It should be simple. Jargon and buzz words create confusion and difficulty in understanding.

2. It should be concise. Repetition of words and unnecessary explanation are to be avoided. It should be kept in mind that more communication is not necessarily better communication.

3. It should be clear in meaning and free from ambiguity.

4. The message should be courteous, no matter whether it is being sent to the subordinates, to the superiors, or to the peer persons. It is to be remembered that courtesy begets courtesy.

5. The communication should give correct information in proper time and in right manner.

6. It should be complete in all respects. Before communicating one should check whether the following ‘5 Whs’ are answered: Who, What, Where, When and Why.

7. Corporate communication should be consistent to the norms of the organisation. It should keep track of the previous communication and maintain a continuity.

8. Metaphors, analogy or examples are sometimes necessary to bring out the meaning of communication easily. So, appropriate use of these is recommended for better communication.

9. Repetition of the key message is necessary in some cases. To become sure about the success, the communicator sometimes repeats the key message.

10. An effective communication should have proper feedback. Two-way communication should be encouraged.

11. Proper planning before communication is necessary. The success of the entire communication process depends largely on planning in advance.

12. Last but not the least, effective channels should be chosen and established to make the corporate communication successful.